AUSTRALIA’S INCOME

Hokitika Guardian, 22 April 1930, Page 7

AUSTRALIA’S INCOME

ECONOMY URGED

(Australian Press Association)

■SYDNEY, April 17

Speaking at tlk. 1 Royal Agriculture Show luiicueon, tlie Federal Treasurer, J ion E. G. 'i iieodoro, said that there would he a diminution of ten millions sterling in -the national income of Australia this year. In addition to a tailing off of the Customs revenue, due to the iY.vlrici.ions on imports, there would also he a shortage in the taxable in.ome of about thirty millions, lie added. “Whether we like it or not, there must l.e economy in all departments of Government, public and commercial life. \\ lien wo do go on the London market, the entire proceeds will l.e required for the reduct;n of 'the existing overdrafts in London and for retiring certain Treasury Jfills ret eutly told to the market. Theic is no prospect of Australia looking to London for loan money for public works lor a considerable time. Air Theodore, replying to the criticism of Victorian banks as to the Federal Reserve Bank proposals, denies that statement that a concentration of reserves under the Central Hank will reduce the funds available to carry on the activities of trading hanks. On the contrary, he says, this will in reuse these resources, and will make-them more liquid. Mr! Theodore added that the time was never more opportune for a Central Reserve Bank in Australia than it was now. It was quite incorrect to say that a Central Bank would cause any financial disturbance. This could 01 Iv occur if the Banks resorted to obstructive tactics which he could not believe they would do.